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What Does a Payment Service Bank License Allow in Nigeria?

According to the regulations set forth by the Nigerian central bank, subsidiaries of mobile network operators (telcos), mobile money operators, retail chains (supermarkets), and banking agents are eligible to apply for the PSB license, provided they meet specific requirements. These prerequisites include a capital base of 5 billion naira ($12 million) and a combined application and license fee amounting to 2.5 million naira ($6,400), which are non-refundable.

The issuance of these new banking licenses to Nigeria’s leading telcos follows the release of updated guidelines for the licensing and regulation of payment service banks by the CBN on August 27, 2020.

Nigeria’s New Finance Act of 2023: Key Changes and Implications

Under the Nigeria Finance Act of 2023, a capital gains tax of 10% has been introduced for digital assets. This tax is applicable when selling or disposing of valuable digital items that result in a profit. The tax calculation involves deducting allowable deductions from the total earnings in a specific assessment year. It applies to a wide range of property types, including options, debts, and intangible assets, regardless of their physical location. The tax also covers foreign currencies, except for the Nigerian currency. Any property that is created or acquired without purchase is considered an asset for tax purposes. However, the Act does not provide a clear definition of what constitutes a digital asset, leading to controversies regarding its scope and intentions.